Jul 8, 2010

Antam needs US$800 mio to buy Inalum

One of Indonesia's largest nickel player PT Aneka Tambang Tbk (Antam) is advised to seek US$700 million-US$800 million of financing in a bid to acquire 58.87% stakes of aluminum joint venture company PT Indonesia Asahan Alumunium (Inalum) from Japanese share holder in 2013.
"The shares are valued at around US$700 million-US$800 million. If we got the shares, we have to pay the acquisition," said State-Owned Minister Mustafa Abubakar said today.
By acquiring 58.87% stakes in Inalum, it would pave way for the government to control 100% stakes. Japan share holder still own Inalum until 2013. But, the proposed offering should be obtained in October 2010 at maximum.
The govenment has also offered Inalum to local government of North Sumatra to join the acquisition. Inalum has production capacity of 230,000-240,000 tons a year. Indonesian government now controls 41.13%, while the remaning is owned by Japanese government. 

Disclosure: No position at the stock mentioned at the story above.

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